Toshiba said to be losing $200 on each HD-DVD player sold

[Boyd Ostroff]

http://yahoo.businessweek.com/techno...622_113255.htm

That's the verdict of market research firm iSuppli, which carried out a so-called teardown of the machine, picking it apart to determine what's inside and how much it cost to build. iSuppli analyst Chris Crotty reckons the internal electronics cost about $674, bringing the total to more than $700 when components such as packaging and manufacturing are included. The players sell through retailers like Best Buy and Target for $499, leaving Toshiba with a per-unit loss of $200 or more.

[Emre Safak]

ah...that's so nice of Toshiba. Forfeiting profit for the public good.

[Mack Fisher]

I think they are trying to go cheap so no one buys blu-ray, if they become the dominant format they will make their money back in a heartbeat.

[Kevin Shaw]

I'd question the cost estimate given that Toshiba HD-DVD players are just stripped down computers with a few extra output jacks, and basic computers hardly cost anything these days. But hey, if Toshiba wants to give 'em away that's okay by me. As the saying goes, "they'll make it up on volume."

[Gene Brockhoff]

I bought one. It's quite spectacular. The HD-DVD's look great, but the big surprise is how good my "old" SD dvd's look, stunning! Thanks Toshi, for the $200 break. Lord knows I deserve it after paying $3800 for the first wave of 16x9 projection big screens.

[Harrison Murchison]

Makes sense.

Sony's going to do the same thing with the Playstation 3.
Toshiba may as well get their product out at cost and get some movies sold.

I have my doubts that iSuppli is right because you never really know what deal is really being cut for components but clearly the Toshiba player is more expensive than what they are charging.

2nd generation units should have more consolidation of parts to reduce the cost and I expect more vendor will jump in at this time.

[Heath McKnight]

Saw this at imdb.com:

"Toshiba Selling HD-DVD Players at a Loss

Hoping to deal Sony's Blu-ray high-definition DVD player a knock-out blow before it even enters the ring, Toshiba has begun selling its own HD DVD player at a loss, the online edition of Business Week reported today (Friday), citing a study by market research firm iSuppli. According to the firm, it costs Toshiba more than $700 to produce each HD DVD player, which it plans to sell at U.S. retailers for $499. Sony's Blu-ray players, by contrast, are expected to display a price of around $999. In its report, iSuppli analyst Chris Crotty commented, "Toshiba wants to get a head start and build an early lead."'

Almost like the current Xbox 360s; they're being sold at a loss of around $100 or so, I believe.

heath

[Jason Varner]

I don't buy it. Consoles have always sold hardware at a loss because they make money on the license from game developers, which is why microsoft gets so butt-hurt when when a bunch of hackers turn an xbox into a PC. If Toshiba owned the HD-DVD codec, mp4v10/h.264.....they don't, then they might adopt such a strategy. Toshiba has no\little vested interest in the format other than what they believe is the future of HD. Try building a car from the parts counter of a dealership and see what it costs you, iSuppli I say thee nay.

[Jon Fairhurst]

I believe that Toshiba owns a number of patents related to HD DVD. If they've done their homework, they make money from the players sold by other manufacturers, they make money from the duplicate houses and from raw media manufacturers. Same deal for Sony et al on the Blu-ray side.

Regarding the codec, both players adopted MPEG2, H.264 and VC1. There are certainly some players who make money no matter how this ends up.

[Tomas Chinchilla]

Me personaly, I bought the HDDVD player the day it was available at BB, no regrets now and I don't think I'll ever will.

This thing it's amazin, and even my SD DVD's look amazing. for $599 can't beat it.

[John Kang]

Samsung has just launched its bluray player this week and Sony has released it's first Bluray burner as well. Check out my post on the DVD section regarding the burner.

Link to cost of HD-DVD and Samsung release at: http://mdn.mainichi-msn.co.jp/busine...bu033000c.html

Now, if someone with an older Ulead Movie studio will try burning some Bluray formated discs on DVD-r or DVD+r and try it on a bluray player... Be interesting to see if contents for Bluray can be burned on a standard DVD like the HD-DVD format allows.

[Heath McKnight]

Has anyone burned a high def DVD via Apple (on DVD-r) and tried playing it in an HD DVD player?

heath

[Tomas Chinchilla]

YES!

It plays beautifully, only one issue and that is the Menu layers not working. But if you set the movie to first play it's all good, or you can always choose the chapter on the remote.

[Heath McKnight]

So make no menu, just first play. What about 1080i vs. 720p?

heath

[Tomas Chinchilla]

Tried them both with no issues.

Obviously 1080i native looked amazing, 720p looked great too but compared to 1080i it got 2nd plce for me.

Of course I am not too sure that was a valid test since I took my 1080i material shot with an FX1 and deinterlaced it. The other test was with DV Film Maker and a 24p Conversion........Still looked good.

At the end 1080i wins.